India's Blue Dart Express reports Q1 profit fall, hurt by expenses

Mahindra Logistics

19/07/2024 10:24

BENGALURU, July 19 (Reuters) - Indian courier delivery company Blue Dart Express  BLDT.NS 
reported a 12.8% fall in its first-quarter profit on Friday, as expenses overrode the recovery in
volumes.
    The company's consolidated net profit fell to 534.2 million rupees ($6.4 million) in the
April-June quarter from 612.8 million rupees a year ago. Its profit had risen 12% in the previous
quarter after five straight quarters of flat or declining profit.
    The total expenses rose 9.8% to 12.78 billion rupees in the quarter.
    For further earnings highlights, click: (Full story)
    
    KEY CONTEXT
    Logistics companies overall have grappled with increased costs and faced tough competition,
especially from the logistics arms of e-commerce services. However, they signalled a recovery in
volumes in the previous quarter amid a general pickup in economic activity, while they also raised
prices.
    Additionally, Blue Dart added new freighters to its network, boosting its capacity and, according
to analysts, leading to volume growth.
   
       
    PEER COMPARISON
 
                                   Valuation (next 12   Estimates        Analysts' sentiment
                                        months)         (next 12    
                                                         months)    
                        RIC        PE        EV/EBITD  Revenue      Mean      # of      Stock to
                                             A         growth (%)   rating*   analysts  price
                                                                                        target**
 Blue Dart Express       BLDT.NS      50.78     22.29     11.01     Hold             5      1.20
 Delhivery               DELH.NS     350.70     43.32     17.25     Buy             21      0.75
 Container Corporation   CCRI.NS      38.43     24.38     17.48     Hold            11      1.02
 of India                                                                               
 Mahindra Logistics      MALO.NS      61.06     12.56     14.86     Hold            10      1.22
 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong
Sell
 ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the
stock is trading above the PT
    
        
    APRIL-JUNE STOCK PERFORMANCE
    
    
    
    
-- All data from LSEG
-- $1 = 83.6300  Indian rupees


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 (Reporting by Anisha Ajith in Bengaluru; Editing by Janane Venkatraman
)
 ((anisha.ajith@thomsonreuters.com;))